February 12, 2020
What MSPs Should Track in a PSA Solution
There’s a lot of noise about measurement, accountability, and using data to make better decisions. Everyone has a theory about how you should be doing it, and this varies based on business type and industry. As a managed service provider (MSP), you may be asking yourself, “How can I use data to make smart decisions about my business in particular?”
In our new eBook, we’re cutting through the noise, and sharing the 10 key performance indicators (KPIs) MSPs should be tracking. Based on Autotask PSA data and expertise, we have determined that these 10 KPIs will help MSPs make a positive impact on continuous business growth and profitability.
Profitability in Your PSA
First, you need to know exactly where you are making money and where you are losing it. This is especially important for managed services contracts because underlying costs can significantly impact your profitability. Profitability should be examined by breaking it down at the client, contact, and service-level.
To gain an accurate understanding of profitability, start by identifying your current revenue stream and possible losses. For example, is there a “top-heavy profit distribution where most of your revenue is coming from one client? If so, losing that customer could pose a significant risk to your business. On the flip side, you can look at your smallest revenue-generating customers and examine why they bring in less. Examine their current contract and ask yourself questions about the time they command from your services and if it evens out. Are they a “needy” customer that requires lots of extra attention? If the answer is yes, you should be thinking about how to factor in the extra time your team is allotting to them when their contract is up for renewal.
You also need visibility into underlying costs. Consider looking at profitability by account (image on the left), contract, and offering to gain an even more accurate understanding of the impact these items have on your monthly recurring revenue (MRR).
To learn about more KPIs all MSPs should track, check out our new eBook. You’ll learn all about dashboards designed to make your job easier, how to measure customer satisfaction, how to track help desk efficiency, the CRM feature for sales forecasting, and more. Download it today to get started.